Businesses discuss winter water failures with Ofwat

Businesses in Kent that were affected by water supply failures during the peak festive trading season have met the chief executive of water regulator Ofwat.

Supplies were disrupted for 24,000 customers in the Tunbridge Wells area for two weeks in November and December last year when a plant failure saw households lose supply, followed by a boil-water notice lasting several days.

South East Water has launched a £600,000 fund for businesses affected by the disruption to claim lost revenue. Applications can be made until the end of May.

Alex Greig, owner of Fuggles Beer Café, said that more could have been done and called for the regulator to have more powers.

Greig said that his business lost £10,000 to £20,000 overall, which he described as "massive".

He said the loss had prevented him from spending on building improvements and investing in staff and the business, adding that the firm could still not move forward.

"They've said they're going to be paying out by the end of August, which is going to be a nine-month period," he said.

He added that for some businesses who needed the money to survive, August would be too late.

He said that water supplies were a "non-negotiable" essential public service, adding: "Ofwat and all regulators need to have more power but also need to have more backbone."

Ofwat chief executive Chris Walters, speaking in Tunbridge Wells on Friday, said that South East Water had issues with performance and financial resilience.

He said that the regulator was consulting on penalties, including a £22m fine for the supply interruption, and investigating issues between 2020 and 2023.

It was also consulting on an enforcement order, after an inquiry was launched in January, which is ongoing.

The enforcement order would legally require the company to fix problems and prevent them happening again, he said.

"What we also hope is that South East Water will continue to step up, take responsibility, grab the issue, fix things for its customers and engage with us as the regulators in a new and better way," he said.

South East Water customer services director Tanya Sephton said that the discretionary fund had been set up for businesses that faced losses from 29 November to 12 December 2025, following the failure at the Pembury treatment plant.

She confirmed that claims would be assessed after the application window closes on 31 May.

"We are incredibly sorry for the disruption to the water supply and the impact this has had on local businesses," she added.

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